STAND. COM. REP. NO. 959

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1111
                                     H.D. 2




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No.
1111, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO YEAR 2000 ERRORS BY COMPUTER-
     BASED SYSTEMS,"

begs leave to report as follows:

     The purpose of this bill is to address potential legal
problems arising from Year 2000 computer errors by:

     (1)  Creating a process for resolving disputes that includes
          non-binding arbitration; and

     (2)  Providing protections for persons who exercise
          reasonable efforts to identify and solve these errors.

     The State Attorney General, the Department of Accounting and
General Services, AT&T, Hawaii Medical Service Association,
Hawaii Long Term Care Association, Hawaii Bankers Association,
the Queen's Health Systems, State Farm Insurance Companies,
Kaiser Permanente, the Chamber of Commerce of Hawaii, and Bank of
Hawaii testified in support of the bill.  The Judiciary testified
in support of the intent of the bill.

     Your Committee has made technical, nonsubstantive amendments
to the bill for style and clarity.


 
 
 
 
                                 STAND. COM. REP. NO. 959
                                 Page 2

 
     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
1111, H.D. 1, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as H.B. No. 1111, H.D.
2.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair